Bitget Research: Major Cryptocurrencies See Broad Decline, BWB Gets Listed on Pre-Market of Whales Market

Bitget Research2024/04/25 07:42

By:Jarseed & Aaron

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

Yesterday, the cryptocurrency market generally pulled back with Bitcoin experiencing an intraday decline of approximately 3.2%. Bitcoin ETFs saw a net outflow of $121 million, with no net inflows. Activity within both Bitcoin and Ethereum ecosystems declined rapidly, with Ethereum's on-chain gas fees dropping to single digits. The highlights are as follows:

Sectors with strong wealth creation effect: AI and Meme sectors.
Top searched tokens and topics: Mezo and Solana Mobile.
Potential airdrop opportunities: Starknet and Avail.

Data collection time: April 25, 2024, 4:00 AM (UTC)

1. Market Environment

Yesterday, the cryptocurrency market experienced a general decline, with Bitcoin ETFs recording a net outflow of $121 million. Numerous central banks have indicated they will closely monitor changes in their domestic exchange rates, suggesting increased short-term volatility in the dollar. Additionally, ongoing tensions between Iran and Israel introduce numerous unstable elements, significantly impacting investor confidence in risk markets.

In terms of the crypto ecosystem, Bitcoin has gradually stabilized after high fees triggered by the Runes protocol, with Bitcoin network fees returning to normal. Miners are now facing the challenge of income reduction due to the halving of block rewards for the first time. Ethereum's on-chain gas fees have dropped to single digits, indicating a lack of short-term focal points and wealth effects on the chain.

2. Wealth Creation Sectors

2.1 Sector Movements – AI Sector (NEAR, AR, and RNDR)

Primary reasons:

The AI sector has shown strong resilience and quick recovery in the current market downturn, making it a favorite among venture capitalists this cycle. Notably, NEAR, AR, and RNDR are leaders in specific segments within the AI sector.

Gainers: Over the past 7 days, NEAR has increased by 24.1%, RNDR by 10.2%, and AR by 33.3%.

Factors affecting future market conditions:

The AI sector is not only a key area of focus in the cryptocurrency industry but also a hot topic in tech startups. Innovations and the discovery of new applications in AI can rapidly influence the evolution of the industry. Investors should closely monitor the new AI applications and look for similar concepts within the crypto sector.
Applications in AI require attention not only to their narrative potential but also to the actual market demand and user base. There are already several deployable AI applications in the crypto space, and investors should focus more on the demand aspect of these applications.

2.2 Sector Movements — Meme Sector (PEPE, BONK, and FLOKI)

Primary reasons: Memecoins have always been a manifestation of the cryptocurrency market's attention economy. This rebound shows a strong recovery from a technical perspective, with several leading memecoins aligning with bullish trends. A recent report by Bloomberg indicated that hedge funds are succumbing to the incredible returns of memecoins, suggesting some Wall Street hedge funds’ increasing interest in the unique narrative of memecoins.

Gainers: PEPE is up 48.9% in the past 7 days, BONK is up 70.2%, and FLOKI is up 38.1%.

Factors affecting future market conditions:

Memecoins primarily attract attention due to fair distribution, simple dissemination of images, and price movements driven by events rather than functionality. These factors, highly susceptible to human influence, carry high risks. Investors should exercise caution when investing in memecoins.
Exchange listings are crucial for memecoins to reach a broader audience. As most crypto users still transact through centralized exchanges, the potential for a popular memecoin to expand significantly depends on its listing on mainstream exchanges.

2.3 Sectors to Focus on Next — Bitcoin L2 Chains

Primary reasons: The market has experienced volatility this week. With the groundbreaking growth of BounceBit's TVL and the launch of Runes, the crypto market’s interest in BTC L2 solutions has heightened.

Specific tokens:

BOB: BOB is an EVM Rollup stack with native Bitcoin support. Developers build decentralized applications on top of Ordinals, Lightning, and Nostr. The project has announced its mainnet to launch on May 1. The Bitcoin Layer 2 network has announced that Coinbase Ventures has joined its $10 million seed funding round.
BB: BounceBit is a BTC restaking chain. BB has a maximum supply of 2.1 billion, with an initial circulation of 409.5 million, and is a project with investments from Binance Lab. Binance will list BB after the Megadrop is completed.
MERL: A Layer 2 project based on the Bitcoin network. Merlin Chain's on-chain TVL has reached $3.1 billion, the highest TVL among Bitcoin Layer 2 projects.

3. Top Searches

3.1 Popular DApps

Mezo: A BTC Layer 2 project focusing on the BTC ecosystem, helping BTC holders with on-chain transfers and financial management, and driving the development of the BTC DeFi system. Mezo recently announced the completion of a US$21 million funding round with participation from industry-leading institutions such as Pantera Capital, Hack VC, and Multicoin Capital. The official announcement of their BTC asset staking plan and the introduction of a referral system indicate strong airdrop expectations. The project is currently in the early stages of operation.

3.2 X (former Twitter)

Solana Mobile: The recently popular memecoin MANEKI has decided to airdrop users who previously purchased Solana Mobile phones, valued at about $100 based on the current market cap. Users who have Solana Mobile should check their wallets for the airdrop to avoid missing the optimal trading opportunity.

3.3 Google Search (global and regional)

Global focus:

Why is Down Today: The cryptocurrency market is broadly down today, mainly due to a net outflow of $121 million from BTC ETFs yesterday, which directly bolstered bearish forces in the market. Additionally, yesterday's pullback serves as a rational correction following a week of gains. The implied volatility in the options market for BTC and ETH has decreased, suggesting that options traders are pessimistic about the likelihood of a breakthrough in the near term. BTC is likely to oscillate and build a base between $60,000 and $70,000.

Regional focus:

(1) Yesterday, the trending searches across various regions of Asia primarily centered around memecoins:

MANEKI, recently launched on Solana, quickly became a focal point of the community, experiencing a 10x increase in value and showcasing a significant wealth effect. Currently, this memecoin maintains strong liquidity with a $19 million liquidity pool, making it one of the few memecoins thriving during market corrections. Influenced by this, new Solana-based memecoins like WIF and BOME have also seen varying degrees of increase. The new memecoin trend in Solana is worth continued attention.

(2) No significant trends in Africa, Asia, and English-speaking countries:

These regions show a more dispersed interest, with BTC, ETH, and SHIB frequently appearing in trending searches. Users are also showing interest in narratives related to AI and RWA. The overall market is diverging. After the market regains its upward trend, there might be concentrated bursts of activity in specific sectors, presenting an optimal time for investment.

4. Potential Airdrop Opportunities

StarkNet

Starknet is a Layer 2 Ethereum network utilizing zkEVM and Rollup technologies to scale the Ethereum ecosystem. Currently, its ecosystem has a TVL of $210 million and is in the process of being built out.

Starknet has secured substantial funding from prominent institutions, including Paradigm, Coinbase Ventures, Multicoin Capital, Pantera Capital, and Sequoia Capital. The most recent funding round valued the project at $8 billion, with $100 million raised.

Recent updates: The Starknet Foundation has announced it will issue additional STRK airdrops to three groups of users: pooled stakers, StarkEx users who were mislabeled as VeVe users, and actual VeVe users. Readers can head to the Starknet official website to see if they are eligible for the airdrop.

Avail

Avail is a modular blockchain project under Polygon, focused on data availability. It organizes and records blockchain transactions and can prove the availability of block data without the need to download the entire block. The project's founder, Anurag Arjun, is a co-founder of Polygon and has substantial resources within the industry.

Avail has a strong track record of public financing, with investments from Dragonfly, Founders Fund, Nomad Capital, SevenX Ventures, and Figment Capital, totaling $27 million in public funds. Backed by these institutions, the project's valuation is likely high, and the potential wealth effect from airdrops could be significant.

Recent updates: Avail has announced a token airdrop plan, distributing 600 million AVAIL tokens to 354,605 wallet addresses. Users can verify and claim their tokens from today until May 5 at 7:59 AM (UTC+8). Readers can head to the Avail official website to see if they are eligible for the airdrop.

Disclaimer: everything in the article represents the author's point of view and has nothing to do with this platform. This article is not intended to be used as a reference for making investment decisions.